The Minister of Finance, Fernando Haddad, said this Tuesday (4), in the capital of São Paulo, that the government remains committed to its intention to seek a balance in public accounts, and refuted criticism that fiscal targets will not be met. According to the minister, criticism that the government will not meet its goals would be “delusional”.
“We are going to deliver the best fiscal result in the country in 4 years, even paying for everything that was not paid due to the previous government’s default. And the impression given is that we are experiencing a fiscal crisis. This is a delusion that I need to understand from a psychological point of view, because from an economic point of view I cannot understand it. They are saying that I will change the primary surplus target from 2023. But I haven’t changed it once. They are saying that I will change the target from 2023, but I meet my objectives”, he stated.
The minister reaffirmed that despite there being “a game against Brazil” and “a lot of fans against it”, the government will not back down from its goals.
“This is what people need to understand, we will not back down from the objectives of putting the accounts in order, which have been disorganized since 2015”, guaranteed the minister when participating in a panel at the COP30 Business & Finance Forum event, promoted by Bloomberg Philanthropies.
“I’m really worried about the amount of money that is coming into the country,” he added.
During his participation in the event, Haddad declared that Brazil is creating a favorable business environment, such as tax reform, which is attracting foreign investment.
“We have never had so many auctions at B3 [bolsa de valores] of highways and infrastructure, in general, as we have had in these 3 years. The Ministry of Transport, as an example, will double the average of the previous 4 years in terms of business supply in Brazil”, he recalled.
Another factor that should contribute to this favorable business environment, according to Haddad, is the income reform.
“We are about to vote on a new stage of income reform in Brazil. Inequality in Brazil is an impediment to growth. There is no growth with this level of inequality. But we are correcting this”, he said.
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Selic
The minister once again defended the reduction of the basic interest rate, the Selic, currently set at 15%. For Haddad, the current level is unsustainable and the expectation is that it will fall soon.
“No matter how much pressure the banks put on the Central Bank not to lower interest rates, they will have to fall. There is no way to sustain 10% real interest rates with inflation of 4.5%”, he assesses.
The minister said that despite interest rates being at a high level, the government is calm and the country is expected to perform well next year.
“I think we are in a position where we can enter the year 2026, calmly. We can finish the term with much higher indicators around the world. We can control the debt by paying less interest. You don’t need to pay all that interest. All that interest has an impact, including on inflation.”
Regarding expectations regarding the judgment in the Federal Supreme Court (STF), which could definitively extend the Fiscal Responsibility Law, he said that “it will be a revolution if Congress cannot create expenses without identifying the source of revenue”.
